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portunities to convince myself of the immense importance of the American trade to her welfare, and of the consequently imperative necessity on her part to conciliate the good opinion of the American Government; the more so, as there exists no treaty between the two countries to secure her permanently, or for a limited time, the present commercial advantages in the markets of the United States. Her Government, indeed, is fully sensible of the fact, but, timid as her policy is to oppose the guardianship, as it were, of the Russian neighbor, she ought to be made to take a leading part in the deliberations of the approaching annual convention (in June next) of the states of the German zoll-verein in advocating, seemingly of her own accord, the reduction in question of the present duties on American tobaccoes on the basis of a sine qua non as to her future renewal of the commercial agreement with Prussia. And if she cannot be prevailed upon by motives of ambition to throw the respectable weight of her influence into the scale of political debate, she ought to be made to raise the voice of self-interest, stimulated by the apprehension of jeoparding, by an undecided policy, the stability of her transatlantic interests.

Keeping the views of our Government before me, I proceeded to the city of Altenburg, the capital of the Dutchy of Saxe-Altenburg, where, in social intercourse with the principal officers of that little state, the conversation turned immediately upon American affairs, trade, industry, and commercial politics. Having thus obtained a footing, and anxious to improve the opportunity, I waited upon M. de Brarleu, the Duke's principal minister, and, in an informal manner, sounded the views of his Government. The same complaints, the same arguments, hopes, and fears, answered here as well as in royal Saxony; and he finally admitted that, as no agricultural interests of theirs appeared thereby to become endangered, they would cheerfully consent to a reduction of the duties on American, and a corresponding proportionate increase on the more valuable descriptions of other than American tobaccoes.

But, at the same time, it must be borne in mind that the ducal houses of Saxe-Weimer, Altenburg, Coburg, Gotha, Miningen, the princely houses of Renss and Schwartzburg, constitute a subdivision of the German zoll-verein, called the Thuringie board of customs, at the head of which stands Saxe-Weimer. They, together, send a commis. sioner or delegate to the above-mentioned annual conversation, with a seat and vote in its joint deliberations. This circumstance confirms the opinion which I ventured to express in my despatch No. 2, that the smaller statesparticularly Saxe-Weimer-require alike to be convinced of the necessity of siding with us, and of thereby promoting, indirectly, their own interests. Saxe-Weimer has woollen factories_especially in the town of Apolde—the dealings of which with the United States are not only respectable, but highly advantageous to the capital and industry of its inhabitants.

Having thus submitted to you the results of my inquiries and exertions in behalf of the object under consideration, I have the honor to remain, with great respect, sir, your obed't serv't,


United States Consul.

Mr. Wheaton to Mr. Forsyth. [No. 58.]

BERLIN, December 27, 1837. Sir: I have the honor to enclose Mr. Dodge's report (No.2), from wbich you will perceive the marked difference between the Prussian and Hanoverian tariffs, in favor of the latter, so far as respects tobacco and our other staple productions, as well as colonial produce, and the other elements of the transit trade.

It will also be perceived that the kingdom of Hanover offers, in its manufactures, important objects of commercial exchange with the United States.

I also leg leave to enclose a translation of an article which I have prepared and caused to be published in the German newspaper of the widest circulation printed here, and the only one the King reads, with a view of sounding the way to an official discussion of the tobacco question. I have also taken measures to have the article inserted in various gazettes published in the different states of the commercial union, with the view of diffusing information on the subject, and exciting public attention to the importance of the tobacco trade, as furnishing one of the principal means of paying for the German manufactures, wines, &c., exported to the United States.

I have the honor to be, with the highest consideration, sir, your obedient servant,


Secretary of State.

ler andads, 10 per cent thalers and basik

Mr. Dodge to Mr. Wheaton. [No. 2.]

BREMEN, December 13, 1837. DEAR SIR: From information which I have obtained in Hanover, it appears that American raw tobacco pays a duty of consumption of 1 tha: ler and 1 gute groschen per center; the tare allowed is 14 per cent. on hogsheads, 10 per cent. on baskets or hampers, and 5 per cent, on bales. Manufactured tobacco 6 thalers and 6 gute groschens per centner; tare 18 per cent. in hogsheads, 10 per cent, in baskets or hampers, and 5 per cent. in bales. On rice and rice flour 1 thaler and 1 gute-groschen per centner; tare 14 per cent. in hogsheads, and 5 per cent. in bales. On raw cotton 6 gute-groschens per centner. On whale oil 18 gute-groschens per centner. The new Hanoverian centner is the 100 pounds of Cologne, and may be considered equal to 1024 pounds avoirdupois. The best argument to be made use of in favor of a low rate of duties is the fact that in the king. dom of Hanover, the Government, with their low rate of duties, obtain 27 gute groschen gross per head of the total population, while the Prussian Government, with its high rate of duties, obtains only 22 gute groschen gross per head. There cannot be a stronger argument than the aforegoing; and, besides, we must likewise bear in mind that the collection of the duties, under a low tariff, is much easier and not near so expensive as under a high tariff; as a high tariff always induces smuggling, and, consée quently, great expenses to the Government to prevent it. The net difference to the two Governments may therefore be considered much greater than the abovementioned proportional difference of 22 to 27, and this difference must naturally be in favor of Hanover; so that probably Hanover collects, proportionably with its low rates of duties, at least 30 per cent. per head on every inhabitant of the kingdom more than Prussia; and you will find that I shall be enabled to lay before you many facts, of the injury which Prussia is doing to itself by its high rates of duties, and that if the same high rates of duties are continued many years longer, the revenues of that kingdom will greatly suffer. While in Hanover I collected a mass of valuable information respecting its commercial resources; in fact I shall now be enabled to form a complete statistical history of that king. dom. I have inforination respecting more than 200 different manufactories, and the prices of the articles, and, also, information of the produce of its soil; so that I shall in a few days commence a table of all the produce of that country, whether of its manufactories, or its soil---and shall mention, against each article the duty which is levied on it if imported into the United States. The commercial resources of Hanover are considerable, and can be made highly useful to our country. There are not many individ. uals in the kingdom of Hanover that may be considered as very rich, but the mass of the people may be considered as rich as in any part of the world, and great exertions are making to increase its manufactures, and many of thein are well calculated for our market. Some of the Bremen merchants have contrived a new way of getting the better of Uncle Sam: by law all invoices should be made in the currency of the country from which they are shipped, and some of the Bremen merchants have made their invoices with two columns, in one of which they put the louis d'or rix dollars, and in the other they bring the amount of each article into banco-marks, at a rate of exchange which brings the louisd’or rix dollar to be worth only 75 cents, when the average value of the Bremen rix-dollar, during 1837, has never been lower than 78 cents. You will thus perceive that if invoices, to the United States, made in that manner, have amounted to a million of dollars, and if the duties on the articles have averaged 38 per cent., the Bremen merchants have got the advantage of the United States at least to the amount of fifteen thousand dollars, beside the sum they have saved by not taking a consular currency certificate, which, had they have taken, would have prevented them from thus getting to windward of our revenue laws. How it is that the collectors in the United States have permitted such in. voices to be entered, in direct contradiction to the law and to the instructions froin the Treasury Department, is astonishing; but I think that the Government can bring a claim against the consignees of such invoices, and I believe that it will almost invariably be found that the said consignees are Bremeners, and figure in the invoices as part owners; and whether. they are part owners to the amount of five cents, or of two-thirds of the inte voices, by thus appearing as part owners, it saves the Bremen shipper (purchaser, shipper, and part owner) from appearing at the consulate and swearing to the value of the merchandise. By working it in this manner, they save taking a certificate of their oath, and a currency certificate, and get the advantage of the United States a considerable sum. It really is time that the Bremen merchants should be taught that the laws of our country must and shall be obeyed by them whenever they trade with the United

States. The Bremen merchants, by thus sending their invoices in two columns, say rix dollars and Banco marks, not only get a great advantage in the duties, but they are enabled, by so doing, to undersell the American importer that produces a consular currency certificate, and enters his merchandise accordingly. I remain, dear sir, yours, most sincerely,

JÓSH. DODGE. · His excellency HENRY WHEATON, 8°C., Soc., doc.

From the Berlin Spernicher Gazette of the 23d December, 1837.

At the session of the North American Congress, held in the beginning of the present year, the subject of the cultivation, consumption, and ex. portation of tobacco was much examined and discussed. The result of these inquiries and debates was the passage of a resolution requesting the President to open a negotiation with the different European powers to procure a relaxation of the high duties and other restraints on the trade in tobacco, the growth of the United States.

Providence has dispensed the blessings of various soils and climates among the different regions of the earth, doubtless with the view of exci. ting the industry of man to produce various objects of commercial exchange among the different nations, and thereby promoting a benevolent intercourse among the various members of the great human family dispersed over the many peopled globe.

Among the various productions assigned by the bounty of Heaven to the new world discovered by Columbus, is the tobacco plant, which there grows in the greatest perfection in the central and western States of North America. Custom has rendered this apparently noisome weed a very agreeable luxury in the various forms of smoking, snuffing, and chewing, for the various classes of society, and a solace for the cares and anxieties incident to civilized life in every part of the world. Its cultivation was formerly confined almost exclusively to Virginia and Maryland (where the finest qualities are still produced) but has recently been extended to Kentucky, Ohio, Tennessee, Indiana, and Missouri, which are now estimated to produce as much tobacco as the two first-named States. The total quantity produced in the United States has consequently greatly increased. The consumption within the country has also proportionably increased, while the export to foreign countries has in general remained stationary, and, in some periods, has actually diminished. The diminished demand in the European market for American tobacco has recently been attended with a diminution in the price. This diminution in the value of the article, taken in connexion with the general distressed state of trade, has recently roused the tobacco-planters to a sense of their compromised interests, and induced them to apply for redress to Government A convention of delegates from the tobacco-planters was assembled at Washington in January last to inquire into this subject. The result of this enquête was to attribute the causes of the diminution, in the quantity and price of American tobacco exported, to one of two sources of diminished demand ; that is, to the increased production in Europe, or the er.

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cessive duties on tobacco levied in some European countries, such as Great Britain, &c., and the monopoly of the trade in that article in others, such as France and Austria. In fact, the one cause has acted on the other as cause and effect : the increased duties in some countries and monopolized trade in others have operated to encourage the production of the article in Europe; although it may, perhaps, be doubted whether the application of capital to the cultivation of an article so inferior in quality can be justified on sound principles of political economy, when a cheaper and better article of the same kind might be obtained by the cultivation and sale abroad of other productions better suited to the soil and climate of Europe.

The trade of America with Europe has a constant tendency to import more than it exports—to consume annually more than it can pay for, with the annual produce of the land and labor of the country-and thus to incur a constantly increasing debt to Europe. What is called the balance of trade is constantly against America, and in favor of Europe. This state of things produces periodically, every few years, a revulsion in trade like the commercial crisis which is now in operation, which has reacted on Europe, and which is felt more or less all over the world. The financial distress thus produced has called the public attention in America to the means of paying the debt thus incurred. Hitherto this debt has been liquidated by the exportation of gold and silver coin to Europe, and with the freights earned by American vessels in navigation, and the profits of their trade with other parts of the world. But the present commercial crisis has so deranged the currency of the country as to compel the public and private banks to suspend the payment of their notes in specie. The gold and silver coin is thus locked up in the coffers of the banks, while the production of the precious metals from the mines of Mexico has prodigiously diminished from the political disorders which afflict that unhappy country. It is therefore evident that if America is to continue to consume its accustomed quantities of European goods, it must pay for them with the produce of its soil; its cotton, wool, tobacco, rice, sugar, indigo, and peltries; with the produce of its whale and cod-fisheries, and the freights of its shipping employed in the carrying trade. But if the great staple articles of American agriculture are burdened with excessively high duties in Europe, greater than can be considered indispensable for the fair purposes of revenue-it is evident that the quantity exported from America cannot be increased in value, and consequently the debts, due by the Ameri. can merchant to his European creditor, must remain unliquidated, while the quantity of European goods consumed in the United States, must be greaily diminished. Experience has shown that the loss occasioned by this diminution must be principally borne by those countries which export, principally articles of luxury to the United States, such as the wines, silks, and half-silk goods, glass, galanterie waaren, of France and Gerniany, while the export trade of Great Britain with America will suffer less ; it principally consisting in articles of necessity, or such comforts as the habits of life have rendered indispensable to its well-being. A nation is is like an individual, who, finding it necessary to economize in order to get out of debt, begins with retrenching in the use of luxuries which are not indispensable to the comfort of himself and family.

Next to cotlon-wool, the article of tobacco is the most important staple production of America. The statistical returns collected and published by

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